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India to invest Rs 4,500 crore to build three chemical parks: Minister of State for Chemicals and Fertilisers
Oct-06-2026

Minister of State for Chemicals and Fertilisers Anupriya Patel has asked states and the industry to participate in the 'Bhavya Rasayan' scheme to establish three dedicated greenfield chemical parks. She added that a total investment of at least Rs 4,500 crore will be made to set up these three chemical parks, with a central grant of Rs 1,000 crore per park for common infrastructure facilities and basic utilities. She said that the scheme is not just infrastructure programme, but an attempt to create an environment in which the chemicals and the petrochemical industry can innovate, invest and expand. 

Emphasizing the importance of boosting domestic manufacturing capacity and reducing imports amid rapidly evolving geopolitical situation and immense disruption in the global trade and supply chains, she has stressed on enhancing country’s domestic capabilities and making the country a reliable partner for the rest of the world. Highlighting chemicals and petrochemicals sector’s importance, she noted that the sector is a very integral constituent of Indian economy, contributing around 1% to the country's GDP. She added that India has a huge presence of in both large-scale industries and the MSMEs in the sector. She also noted that the government is giving priority to this sector, which currently has a market size of $230 billion and the target is to reach $1 trillion by 2040.

Moreover, Patel has stressed the need to increase investments in Research and Development (R&D) activities to innovate new products and technologies. Comparing India’s R&D spending with other global players, she said that between 2012 and 2022, the global spending on R&D has gone up from $38 billion to $71 billion dollar, while India's share is quite small at around 3%. She noted that the priority sector designation will allow the sector to be covered under the new Research Development Innovation Scheme, the RDIS scheme, which has an outlay of about Rs 1 lakh crore. Also, the government is exploring some incentive for import substitution and asked the industry to send its recommendation.
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